LTFRB: Jeepney, bus fare hike won’t significantly raise inflation

Land Transportation Franchising and Regulatory Board (LTFRB) Chairperson Martin Delgra III PHOTO by Gabriel Pabico Lalu/INQUIRER.net

The increase in the base fare of jeepneys and city buses will not have any significant effect on the inflation rate, Land Transportation Franchising and Regulatory Board (LTFRB) Chairperson Martin Delgra III said on Thursday.

According to Delgra, a study from the National Economic Development Authority (NEDA) showed that the   P2 increase in jeepney fare and P1 in city bus fare would only contribute around 0.1 percentage points to the inflation rate.

“Nai-consider po natin iyan, so far as may mga sinabi, nilagay doon sa report, if we will increase ang impact niya sa inflation by and large, hindi nga umaabot ng one percent eh. Less than 0.1 percent,” Delgra told reporters at LTFRB’s main office.

(We have taken that into consideration. It was stated in the report that the impact of the fare hike on inflation, by and large, didn’t even reach 1 percent. It’s less than 0.1 percent.)

But even with Delgra’s assurance, the majority of netizens have been firm in their stand against the increase, which brings base fares for jeepneys at P10, P11 for ordinary or non-air conditioned city buses, and P13 for air-conditioned city buses.

Amid negative reactions of the public after the increase was formalized on Thursday, Delgra said that the decision  might be the best situation for the country.

“We would like to think that in so far as the situation that we have seen, this is the best that we can do,” he claimed.

READ: LTFRB approves P1 fare hike on bus

READ: LTFRB approves P2 jeepney minimum fare increase

Several jeepney drivers, however, are still not happy with the fare hike as it is significantly lower than what they have requested.

According to the LTFRB, the original petition from different transport groups was an additional P4 in the base fare, and a P1 increase per kilometer after the first four kilometers.

“Hindi po rin natin masabi, sa opinyon ng iba, kulang, sa opinyon ng iba, malaki. (Some people think that the fare hike is not enough. Some think it’s huge.) So really at the end of the day, we just have to balance the interests of contending stakeholders,” Delgra said.

“Malaki po iyan, if we would have granted that all, eh talagang masakit sa bulsa noong mga araw-araw na sumasakay ng PUJ, ito iyong mga minimum wage earners (The proposed fare increase is huge. If we had approved it, it would hurt the pocket of commuters, especially the minimum wage earners),” he explained.

Barring any motions for reconsideration or court-issued restraining orders, the increase would be implemented on November 2 or 3, or 15 days after the new matrix was published in national dailies. /ee